Munich: Construction boom in Munich over - the crisis is also affecting financial experts

Munich: Construction boom in Munich over - the crisis is also affecting financial experts

According to a report from www.abendzeitung-muenchen.de,

Developments on the real estate market in Munich look bleak. After Russia's war of aggression against Ukraine, the ECB quadrupled mortgage interest rates, leading to higher borrowing costs. In addition, the prices for energy, building materials and tradesmen's services are rising. These developments mean that potential buyers are holding back and building is becoming more expensive. As a result, building applications fell by 31 percent compared to the previous year.

The standstill is already visible at many construction sites in Munich, such as at the construction pit in Sendling or at Nordbad. A well-known Munich project developer, Euroboden, is filing for bankruptcy and the future of further construction projects is uncertain. Signa Holding's Prime Selection real estate division, which also includes the Alte Akademie and Oberpollinger, is also affected.

The bankruptcies and the standstill on construction sites have an impact on the entire real estate market in Munich. The number of available rental apartments is decreasing and prices continue to rise. In addition, potential buyers are deterred by the uncertainty, which can lead to a decline in the real estate market. The crisis shows that the real estate market in Munich is not immune to external influences and that even a booming market can collapse within a short period of time.